Posted by Gene Colter
As any sentient adult knows, real-estate brokers are way down the moral heirarchy ladder, near abusers and certain types of attorneys but maybe just a smidgen above mortgage brokers.
A Justice Department settlement with the National Association of Realtors -- don't call them realtors with a small "r" -- lets this industry off the hook for years of anticompetitve behavior and does nothing to dispel suspicions about the men and women who "help" you to get the best deal for home.
Under terms of the settlement, Realtors cannot discriminate against discount real-estate brokers who might want to put Realtor housing inventory up on their sites. Translation: The Establishment has to let the discounters show everyone's stuff.
But Realtors didn't have to admit any wrongdoing and will not pay a fine.
For years, home buyers/sellers have reported that the big brokers have tried to prevent them from working with discounters. This deal may make things better on the Web (though don't count on full compliance), but bad practices will continue. Some years ago when this blogger opted to list his New York apartment with a discount broker on the belief that the place would sell itself (it was the right time), an establishment broker told me point blank she'd do all that she could to make sure no one came to see the place.
Here is a market where the advent of technology and other competitors has yet to drive down commissons, which have held or even risen a little over the past few years. The Wall Street Journal cites industry executives as saying the Justice settlement won't have much influence overall on commissions.
It's a free market. Just not for the American Dream.
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